In a suit recently filed against JP Morgan Chase, Plaintiffs represented by UFAN Legal Group have alleged that the bank and its subsidiaries willingly engaged in improper loan origination procedures to place borrowers in high cost loans. The suit discusses how money to be made from selling mortgages encouraged a rush to lend to anyone and everyone without regard to the ability to pay. UFAN alleges that borrowers were the unwitting victims in this scheme, which contributed in large part to the mortgage crisis of the late 2000s. UFAN’s lawsuit was filed in Superior Court in Contra Costa County on October 18, 2011 (case # C-11-02390).
The potential liability of JP Morgan Chase stemming from ownership of loans originated during the mortgage boom years, has been well publicized in the press. JP Morgan Chase famously purchased the assets of Washington Mutual in 2008 for the bargain basement price of $1.9 billion. Subsequent inquiries into Washington Mutual’s failure have since raised allegations that the bank’s policies encouraged placing borrowers into high-cost, variable rate mortgages that the borrowers could not afford. It has been alleged that WaMu intentionally misled borrowers and falsified information in order to originate as many loans as possible for sale on the secondary market
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